European stocks were seen rising on Tuesday, halting a three-session losing run as the market tracks gains on Wall Street where the passage of a bill on healthcare reform ended much of the uncertainty about the issue. U.S. stocks rose on Monday, building on last week's strength, as the passage of a bill overhauling the healthcare system ended much of the uncertainty about the issue for investors. Japan's Nikkei average fell 0.5 percent on Tuesday, moving further away from two-month highs hit last week, with All Nippon Airways sliding after the airline more than doubled its annual loss estimate.

Government Debt News

Euro zone government bonds opened lower on Tuesday with Greece likely to dominate markets as European Union wrangling over aid for the heavily indebted country intensifies in the run up to an EU summit on Thursday. U.S. Treasuries were little changed in Asia on Tuesday, holding gains from the previous day but capped ahead of a string of auctions this week.

Emerging Markets

China will probably run a trade deficit of more than $8 billion in March, state media said on Tuesday, citing Premier Wen Jiabao. It would be China's first monthly trade deficit since April 2004. Many in the market think that Beijing will want to see several sustained months of strong export growth before allowing yuan appreciation, so a deficit in March could fuel expectations that China will hold the currency steady for a while longer.

Top News

Google Inc closed its China-based search service and began redirecting Web searchers to an uncensored portal in Hong Kong, drawing harsh comments from Beijing that raised doubts about the company's future in the world's largest Internet market. Google said it intends to continue research and development in China, as well as maintain a sales staff there, even after closing Google.cn and rerouting traffic to the unfiltered search site in Hong Kong. The decision comes amid heightened tensions between Beijing and Washington over a range of issues, from Internet freedom to the yuan exchange rate, economic sanctions on Iran and U.S. weapons sales to Taiwan. China reacted to Google's move by saying the Internet search giant was "totally wrong" and had "violated the written promise it made on entering the Chinese market," signalling a tough line over the dispute.

European equities were set to rise on Wednesday, adding to the previous session's gains and tracking a rally on Wall Street, where both the Dow and the S&P 500 hit 18-month highs. U.S. stocks rallied on Tuesday, led by the tech, industrial and materials sectors, driving the Dow and the S&P 500 to 18-month highs. Japan's Nikkei average finished 0.4 percent higher on Wednesday after hitting a two-month peak, but gains were limited by the yen's rise on the euro and investor reluctance to trade on concerns over Greece's fiscal woes.

Government Debt News

Euro zone government bond futures opened range bound on Wednesday as investors awaited details of how Europe might join forces with the International Monetary Fund in any prospective aid for debt-stricken Greece. U.S. Treasuries drifted sideways in Asia on Wednesday as investors waited for a five-year bond auction as well as housing and factory data.

Emerging Markets

China should keep interest rates low in the short term to boost consumption and private investment, a senior government economist said in remarks published on Wednesday. China has raised banks' reserve requirements twice this year to mop up excess liquidity but, unlike India, Malaysia, Australia and Vietnam, it has kept interest rates unchanged despite rising inflationary pressure. "The central bank will use quantitative tools and try to hold off on the use of price tools," the official China Securities Journal paraphrased Zhu Baoliang as saying. Zhu, with the State Information Centre, a top government think-tank in Beijing, also said: "It's still too early to raise interest rates now."

Top News

The man behind Samsung Group's rise to become the world's largest electronics powerhouse returned to head its flagship unit, two years after being indicted over financial misdeeds. Lee Kun-hee, who was appointed chairman of South Korea's Samsung Electronics on Wednesday, said the company founded by his father faced a "crisis", and needed new ways to grow. "Lee's return removes what had been an uncertainty for Samsung Group," said Park Yun-chae, research head at Kiwoom Securities. "Under the ownership management, founding family member offers long-term visions that are critical to the group's direction, he is expected to help Samsung find its long-term goals and plans."

European stocks are expected to edge lower on Thursday as investors eagerly await the beginning of a two-day summit of European Union leaders, who remain divided on how to help debt-troubled Greece. U.S. stocks fell on Wednesday as Portugal's credit rating downgrade and a weak Treasury note auction stirred concerns about sovereign debt. Japan's Nikkei average rose 0.1 percent on Thursday, with tech shares such as Advantest Corp supported by hopes for strong earnings and by the yen's dip to a two-month low against the dollar the previous day.

Government Debt News

U.S. Treasuries fell on Wednesday, with benchmark notes suffering the worst performance in over seven months as strong economic data and weak demand in an auction of five-year notes had investors fleeing government debt. Japanese government bonds slid on Thursday, handing back the previous day's gains, as traders took their cues from a sharp drop in U.S. Treasuries and the yen's fall to a 10-week low against the dollar.

Emerging Markets

Emerging East Asia's local-currency bond market grew at a faster pace in 2009, offering investors diversification and higher yield opportunities, the Asian Development Bank said in a report. Outstanding volume in the region's domestic bond market grew by 16.5 percent, up from 14.8 percent a year earlier as governments borrowed more to fund fiscal stimulus measures and as foreign investors sought to tap the region's fast-growing economies, the ADB said on Thursday. The development bank defines emerging East Asia as including China, Hong Kong, Indonesia, Malaysia, the Philippines, Singapore, South Korea, Thailand and Vietnam. The ADB said bonds outstanding in the markets totalled $4.4 trillion.

Top News

European Union leaders hold what is likely to be a tense and difficult summit on Thursday, divided over how to help heavily indebted Greece and struggling to maintain confidence in the euro. Diplomatic efforts on the eve of the two-day summit failed to bridge differences over whether to offer a safety net to Greece, helping push the euro down to a 10-month low after Portugal suffered a debt down downgrade. Efforts to arrange a special meeting of the 16 countries that use the single currency had failed by late Wednesday, with France and Germany discussing what role the IMF might play and what form extra contributions by euro zone states could take. "Germany does not want to have a meeting of euro zone leaders unless there is a definite chance for a deal," an EU diplomat said.

European stock index futures pointed to a lower open for equities on Friday, with investors seen taking profits after the FTSEurofirst 300 closed at its highest in nearly 18 months in the previous session. U.S. stocks ended flat on Thursday, dropping off earlier highs as a weak U.S. bond auction and global debt concerns continued to weigh on investor sentiment. Japan's Nikkei average climbed 1.6 percent to its highest close in 18 months on Friday as recent weakness in yen buoyed exporters, and helped by investors looking to secure dividends before the financial year end.

Government Debt News

Euro zone leaders agreed on Thursday to create a joint financial safety net with the IMF to help debt-ridden Greece and to try to restore confidence in their common currency after weeks of wrangling. U.S. Treasuries rose in Asia on Friday as investors hunted bargains a day after a sell-off pushed the benchmark 10-year Treasury yield to a nine-month high.
Emerging Markets

Russian oil exports from East Siberia will stay duty-free this year, but a tax may be levied in 2011 costing Rosneft, Surgut and TNK-BP over $2 billion, Vedomosti daily reported on Friday. The business newspaper quoted a government official and an oil company source as saying the proposal was discussed at a working group between ministries and business representatives but has yet to be reviewed by the finance and energy ministers. A final decision on duties for East Siberian oil is one of the most eagerly awaited by the Russian stock market this year as it can either spur or depress the stock price of companies concentrating on the region.

Top News

The financial aid mechanism for Greece agreed by euro zone leaders on Thursday is workable but unlikely ever to be activated, European Central Bank President Jean-Claude Trichet said. "I am extraordinarily happy that the government of the euro area found a workable solution," Trichet told an unscheduled news conference after a euro zone leaders' meeting. Trichet said the credibility of Greece was improving and he assumed the mechanism agreed by the leaders, which is a mix of International Monetary Fund money and bilateral loans from the euro zone, would not be needed.